Competing in Constellations: The Case of Fuji Xerox
by Benjamin Gomes-Casseres
The relationship between Xerox and Fuji Xerox, its joint venture in Japan, is the centerpiece of this commentary on how alliances among companies are forging new units of economic power known as "constellations." Internal rivalry can put constellations at a disadvantage against single-company rivals, and the ability to manage the balance of competition and cooperation is critical to success.

Setting Supplier Cost Targets: Getting Beyond the Basics
by Timothy M. Laseter, C.V. Ramachandran and Keith H. Voigt
This third article in a series on balanced purchasing focuses on target costing and recommends a five-step process to optimize the cost of product designs still in development. A hypothetical development effort for a sports watch is used to demonstrate the process. If carried out properly and at the right level of detail, target costing can insure competitiveness without jeopardizing supplier cooperation.

How to "Truck" the Brand: Lessons from the Grateful Dead
by Glenn Rifkin
Sound marketing principles from an unlikely source, the Grateful Dead rock group. Jerry Garcia and his fellow musicians emerged from the non-materialistic counterculture of the 1960's to create an exceptionally strong and lucrative brand name that has stood the test of time, and even Mr. Garcia's death in 1995. The basis of the Grateful Dead brand was the group's sustained personal relationship with its customers, derived from an unusual dedication to playing its distinctive and improvisational music at live performances.

How to Stop Bad Things from Happening to Good Companies
by Benson P. Shapiro, Adrian J. Slywotzky and Richard S. Tedlow
Catching the right moment to take action when successful business models begin to wane requires skilled detection work and the courage to face reality. In the second article of a two-part series on value migration -- the process by which changing markets and new competitors threaten a company's equilibrium -- a system of early-warning diagnostics is recommended.

Segments in Time
by Robert G. Docters, John N. Grim Jr. and John P. McGady
The trouble with most market segmentation programs is that they capture customers' preferences only at one point in time. Instead of snapshots, what is needed are moving pictures -- or what the authors call "evolutionary segmentation." By detecting unfolding trends, companies can gain a much better understanding of what customer preferences are likely to be tomorrow, and why.

The Art and Practice of Japanese Management
by John Micklethwait and Adrian Wooldridge
Japan's extraordinary postwar industrial success was defined by lean production, consensus and continuous improvement. But lately it has been the country's perceived weak points, such as lifetime employment and over-regulation, that have come to the forefront of the debate on Japanese management. But new ideas are emerging with the younger, more flexible generation of Japanese managers, which means there will still be plenty for the outside world to learn from Japan. Adapted from "The Witch Doctors" (Times Books, 1996).

The Wired Enterprise: Here Come the Intranets
by Lawrence M. Fisher
Few technologies have been so rapidly accepted as intranets. Effective at lowering costs and improving communications internally, they are playing key roles in customer support too. But they are also presenting fresh challenges, including how to apply the right amount of control to what is inherently a decentralized operation.

An Interview with Paul M. Romer
by Joel Kurtzman
Stanford university economics professor Paul Romer explains how the knowledge economy is creating monopoly power and changing the nature of competition. This stems from the ability of knowledge-based industries to generate increasing returns by capturing as much market share as possible. Unlike traditional monopolies, however, information age giants will face being superseded by new entrants and little danger exists of permanent monopolies -- even in an industry like software.

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